IndiGrid Infrastructure Trust · NSE:INDIGRID
IndiGrid Infrastructure Trust — India Grid Trust — Investor Presentation (March 2019)
28 slides from IndiGrid Infrastructure Trust's investor presentation, March 2019
Slide 1: Corporate Presentation
Corporate Presentation March 2019 Strictly Private and Confidential
Slide 2: Disclaimer
Disclaimer This presentation is prepared and issued by Sterlite Investment Managers Limited (the “ Investment Manager”) on behalf of and in its capacity as the investment manager of India Grid Tr ust (“IndiGrid”) for general information purposes only w ithout regards to specif ic objectives, financi
Slide 3: IndiGrid Vision
IndiGrid Vision To become the most admired yield vehicle in Asia which is built upon solid fundamentals of transparency, governance & providing superior risk-adjusted returns to unitholders Deliver INR 30,000 cr De liv e r P redictable Be st in-class Best in-class INR 300 BN P re D dictable AUM by 2
Slide 4: IndiGrid: Trust Structure
IndiGrid: Trust Structure Sterlite Power Grid Ventures Limited Public Unitholders Sponsor & Project Manager ~21.2% ~78.8% Sterlite Investment Managers Limited Trustee Investment Manager 100% SGL1 100% 100% 74% 100% 49% 74% BDTCL JTCL RTCL PKTCL MTL PTCL Initial Portfolio Asset Acquired Third Party A
Slide 5: IndiGrid: Overview
IndiGrid: Overview Trust • India Grid Trust (“IndiGrid”) Sponsor / Project Manager • Sterlite Power Grid Ventures Limited (“SPGVL”) Independent Trustee • Axis Trustee Services Limited (“Trustee”) Investment Manager • Sterlite Investment Managers Limited (“SIML”) • Current sponsor holding is 21.17%,
Slide 6: Diversified Unit Holders
Diversified Unit Holders Unit Holding Pattern (As on February 28, 2019) Sponsor Retail 21% 25% Life Insurance 11% Mutual Fund 2% FII 24% Other DIIs 17% Sponsor Life Insurance Mutual Fund Other DIIs FII Retail 6
Slide 7: Portfolio: Strategically Located Long-term Assets
Portfolio: Strategically Located Long-term Assets 6 Portfolio Assets 7 Sponsor Assets Amargarh Samba NTL GPTL ENICL Patran Jalandhar PTCL Gurugram Kadarpur Palwal - Prithala Siliguri Biswanath Aligarh Chariyali Itanagar Neemrana Biharsharif NER Purnia Bongaigaon Misa Silchar AGTPP P. K. Bari Indore
Slide 8: Continued Strong Financial Performance
Continued Strong Financial Performance Consolidated Financials Quarterly DPU (INR) INR million Revenue EBITDA DPU (INR) Q3 FY18 1,267 1,173 2.89 Q4 FY18 1,480 1,321 3.00 Q1 FY19 1,600 1,458 3.00 Q2 FY19 1,653 1,517 3.00 Q3 FY19 1,710 1,553 3.00 INR 18.56/unit amounting to ~INR 525 cr. distributed si
Slide 9: Prudent Liability Management
Prudent Liability Management Repayment Schedule (in INR Millions) 6,775 10,000 6,850 1,129 620 288 344 207 196 147 115 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 Debt breakdown as of INR Millions 8.46% AAA February 28, 2019 Average Debt Cost Rating by Crisil, ICRA,
Slide 10: Trading Performance Since IPO – Low Volatility…
Trading Performance Since IPO – Low Volatility… BSE 500 Indigrid 10yr Gsec Source: Bloomberg Note: Volatility chart and Beta calculations taken from IG listing date June 6, 2017 to January 31, 2019. 10
Slide 11: ….Superior Risk Adjusted Total Returns since listing
….Superior Risk Adjusted Total Returns since listing Similar to 10yr GSEC bond and Substantially higher than comparable equity indices higher than corporate bond ~3.5% lower than NSE 500 25% 6.8% 4.3% 1.9% 4.1% -3.1% 7.6% -13.2% -6.6% Total Returns 20% 15% 10% 18.6% 5% 10.9% 10.1% 5.4% 7.9% 4.2% 3.0
Slide 12: Strong Pipeline of Existing Sponsor Assets
Strong Pipeline of Existing Sponsor Assets East North Odisha NRSS XXIX Gurgaon-Palwal Khargone NER-II Goa Tamnar Interconnection Generation Phase Transmission Transmission Transmission Transmission Transmission Ltd Transmission Ltd Project Ltd. Ltd (NTL) Ltd (GPTL) Ltd (KTL) Limited (ENICL) (OGPTL)
Slide 13: Sponsor asset injection alone underpins 12% IRR
Sponsor asset injection alone underpins 12% IRR FY2018 FY2019-2020 FY2020-2021 FY2022-2023 8.6% 10% Equity IRR at INR 100/unit 12% AUM in INR billion First third party investment by IndiGrid completed © INDIGRID 13 Note: IPA and MRP AUM as of 30th September 2018 Sponsor asset injection alone underpi
Slide 14: Key Strengths
AndiGrid Key Strengths
Slide 15: IndiGrid: Key Strengths
IndiGrid: Key Strengths 1 Robust Sector Fundamentals: Structural Growth story 2 Stable Business Model with Annuity Cash Flows 3 Strong Visibility on Future Growth 4 Backed by Experienced Sponsor with Superior Track Record 5 Strong Corporate Governance Framework 15
Slide 16: Transmission Sector: Structural Growth Story
1 Transmission Sector: Structural Growth Story Significant Under-Investment in Transmission Historically Inter-Regional Power Demand-Supply Scenario (%) 64 Inherent Criticality of Transmission Systems 51 North (% of India) North East (% of Demand 31% India) 43 Generation 26% Demand 1% Generation 1%
Slide 17: Sector Provides Attractive Risk-Return Profile
1 Sector Provides Attractive Risk-Return Profile Inter State Power Power Generation Roads Ports Transmission Certainty of Cash Flows Offtake and cost of Driven by long-term agreements fuel a key risk Traffic risk in BOT projects End-user industry risk Counter Party Risk Direct exposure to Cost over-
Slide 18: Stable Business Model with Annuity Cash Flows
2 Stable Business Model with Annuity Cash Flows Fully operational assets Asset wise Availability 99.6% 99.9% 99.9% 100.0% 100.0% 99.8% • No construction risk and low operating risk 1.6% 1.9% 1.9% 2.0% 2.0% 1.8% • No volume risk as tariffs linked to availability • Incentive payments for maintaining h
Slide 19: Robust Contractual Framework
2 Robust Contractual Framework Robust Contractual Framework Escalable Tariff Revenue Components Fixed Tariff (Non-Escalable Tariff) (Linked to inflation Incentives (Linked to Availability) index in India) Minimal Counter Party Risk Due to Point of Connection (PoC) Mechanism • PGCIL as a Central
Slide 20: Strong Visibility on Future Growth
3 Strong Visibility on Future Growth Sponsor Assets • 7 Sponsor assets (ROFO on 5 assets) – 2 fully commissioned and 5 Under Construction (including 1 partly commissioned) Amargarh • 25 transmission lines – 4,640 ckms of circuit length Samba NTL GPTL ENICL • 8 substations Jalandhar Gurugram • ROFO g
Slide 21: Backed by Experienced Sponsor
4 Backed by Experienced Sponsor Leading Player in the Sector Largest Share of TBCB Projects • One of the leading independent power transmission Market Share in competitively-bid projects (%)1,2 companies in the private sector, with market share of 31% in under the TBCB1 31% • 12 inter-state power tr
Slide 22: Strong Corporate Governance Framework
5 Strong Corporate Governance Framework Experienced Board of Directors • Independent Non-Executive Director of Mapletree Logistics Trust Management and chairs Audit Committee of HSBC Bank (Singapore) Tarun Kataria • Previously, served as CEO of Religare Capital Markets Limited, Managing Director and
Slide 23: Strong Corporate Governance Framework
5 Strong Corporate Governance Framework Board Committees and Unitholder Rights • 2/3rd Independent Directors Audit Committee • Chairperson – Independent Director • 100% Independent Directors Investment • Approve investment decisions in relation to related party transactions, further issue of Committ
Slide 24: Appendix
AndiGrid Appendix
Slide 25: Portfolio: Overview
Portfolio: Overview Particulars BDTCL JTCL PKTCL RTCL MTL PTCL Operational September December June 2015 January 2017 February 2016 June 2016 Since (CoD) 2015 2017 Project Cost INR 21.3 bn INR 18.9 bn INR 4.4 bn INR 2.6 bn INR 3.9 bn INR 2.1 bn 6 lines, Elements 2 lines 2 lines 1 line 2 lines 1 subst
Slide 26: InvIT Structure
InvIT Structure • Sets up the InvIT • Transfers its shareholding in SPV/ assets to the InvIT • Appoints the Trustee • Holds the InvIT assets in trust for the benefit of the unitholders • Responsible for ensuring that the business activities and • investment policies comply with the provisions of the
Slide 27: Regulatory Framework and Strong Governance
Regulatory Framework and Strong Governance Distribution and Borrowings Governance • At least 90% of net distributable cash flows of the InvIT to • 100% Independent Directors on Investment Committee be distributed • Independent Valuers and Advisors • Net consolidated borrowing capped at 49% of the va
Slide 28: Thank You
Thank You
India Grid Trust — Investor Presentation (March 2019) on 6ix